Finding Text
Section II – Financial Statement Findings Section III - Federal Award Findings and Questioned Costs Material Weakness N/C S/R Section 8 CFDA 14.182 Finding 2023-002 Cash Management Criteria: The housing authority is to maintain all properties in good physical condition. Statement of Condition: HUD’s Real Estate Assessment Center inspected the Project and the resulting score was a 52c. The inspection report identified serious deficiencies and demonstrated that the owner was in default of its statutory, contractual and/or regulatory duties to maintain the Project in a decent, safe and sanitary condition. Questioned Cost: N/A Cause: Lack of proper oversight by management of the physical condition of the properties. Effect: Disbursements to the Project’s owner by USDA were suspended until the deficiencies were corrected. Identification of a repeat finding: No Recommendation: The Board and management should establish policies to monitor the physical condition of the properties. Views of responsible officials and planned corrective actions: The Authority agrees with this finding. Upon receipt of the physical inspection results, the Authority worked diligently to rectify the physical deficiencies. All disbursements by the USDA have been resumed